Australia-based Burgundy Diamond Mines (BDM) has signed a binding share purchase agreement (SPA) to acquire Canada-based Artic Canadian’s assets, including the entirety of Ekati Diamond mine, for nearly $136m.
Burgundy will acquire a 100% stake in Arctic Canadian Diamond Company (ACDC), (vendor) and 100% of the common shares of Arctic Canadian Diamond Marketing (ACDM).
Arctic Canadian expects the sale to result in a significant recapitalisation of the firm and allow for continued operations for the Ekati Diamond Mine, which has been in production for nearly 25 years.
Arctic Canadian chief financial officer Kristal Kaye said: “This equity-based investment by Burgundy will greatly improve the financial foundation of the company and our goal of extending mine life at Ekati while continuing to provide employment opportunities for many people in Northern communities.”
Burgundy anticipates the acquisition of Ekati mine to complete its strategy to become ‘truly vertically integrated’ across the diamond value chain.
Upon completion of the acquisition, Burgundy intends to optimise the performance of the Ekati mine and extend its operations, among other activities.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
Burgundy will acquire a 100% stake in Arctic Canadian Diamond Company (ACDC), (vendor) and 100% of the common shares of Arctic Canadian Diamond Marketing (ACDM).
Arctic Canadian expects the sale to result in a significant recapitalisation of the firm and allow for continued operations for the Ekati Diamond Mine, which has been in production for nearly 25 years.
Arctic Canadian chief financial officer Kristal Kaye said: “This equity-based investment by Burgundy will greatly improve the financial foundation of the company and our goal of extending mine life at Ekati while continuing to provide employment opportunities for many people in Northern communities.”
Burgundy anticipates the acquisition of Ekati mine to complete its strategy to become ‘truly vertically integrated’ across the diamond value chain.
Upon completion of the acquisition, Burgundy intends to optimise the performance of the Ekati mine and extend its operations, among other activities.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
